This agreement sets out the terms under which our services are to be provided, including details of the specific services and a summary of our charges for those services.Harpur Wealth Management Limited is a financial planning business focused on helping you understand and plan for your financial future. We are also able to act on your behalf in advising you on investments, pensions and non-investment insurance contracts. We offer you an initial discussion (at our cost) at which we will describe our services more fully and explain the payment options. Following our initial discussion, should you decide to go ahead there is a cost for our advice and services.Full details of what is included in each of our services are provided in our Centralised Investment Proposition.
2. OUR SERVICE
The services that you have selected and the charges for those services are confirmed in Section 9 - Your Consent at the end of this agreement. We agree to provide the services selected and you agree to pay us for those services.We offer both initial and ongoing services. Any advice we have provided to you will only be kept under review as part of an ongoing service for which you have agreed to pay. Where you do agree to purchase an ongoing service, unless otherwise agreed, it will be provided as a follow up to the initial service. Any advice or recommendation that we offer to you, will only be given after we have assessed your needs and considered your financial objectives and attitude to any risks that may be involved. We will also take into account any restrictions that you wish to place on the type of products you would be willing to consider.In some circumstances we may provide you with a non-advised service where you will not receive advice or a recommendation from us. Where this is the case we will provide details of our non-advised services and charges separately.
This agreement shall commence once it has been signed by all parties and shall remain in force until terminated in accordance with Section 6 – Cancellation below.
4. FINANCIAL PLANNING AND HOW WE CHARGE FOR IT
For any aspect of our financial planning all charges and fees will be fully disclosed to you. We will not charge you until we have discussed your payment options and agreed with you how we are to be paid. We will also let you know if there are any other costs that might arise in connection with the services we provide to you.Our charges/fees will be VAT exempt unless the work we provide for you only involves advice and/or preparing a report, in which case VAT may be applicable. We will always tell you if you have to pay VAT before we undertake any work for you. Charges for the ongoing service will not be liable to VAT (unless the initial service was liable to VAT) where both the initial and ongoing services are part of the same package.
Investment & Pension Planning
We provide a restricted advice service. Restricted advice means that we will only consider investments from a limited range of products and/or providers that we have previously researched and found suitable for our clients in most situations.
Our initial charges relating to new work such as client take-on, new investments and one-off reviews are as follows:
Wealth Management Service
An initial financial review with a view to you becoming an ongoing client. At our cost.
Wealth Management Service
Suitable if you want help on a specific area e.g. an analysis of your current pension position or your investment portfolio with the option of ongoing support and advice if required. Up to 3% of any funds invested or transferred.
Examples of how our charges could apply:
- If you invested £50,000, our fee would be up to 3% = £1,500
- If you invested £100,000, our fee would be up to 3% = £3,000
You or we may terminate our authority to act on your behalf at any time. You will be liable to pay for any advice or services that you have received prior to the date of termination. This means that where we have agreed the advice and services that we will provide for you and we have agreed to receive payment for these, either by means of a fee for investment business or by receiving commission from a provider for non-investment business you will have to pay us for any work we have completed up to the date of termination.
Example: One-off advice service Suitable if you just want help on a specific area but don’t want a full financial planning review and are not looking for ongoing support. Up to 3% of any funds invested or transferred, or a fee as agreed with your financial adviser.Examples of how our charges could apply by % of funds invested or transferred:
- If you invested £50,000, our fee would be up to 3% = £1,500
- If you invested £100,000, our fee would be up to 3% = £3,000
We will always present you with a personalised quote before undertaking any work that might be charged for. Our charges are based on the following hourly rates:
- Administrator: £100 per hour: Responsible for sending out paperwork and requests for information.
- Adviser: £300 per hour: Responsible for conducting all fact finding and constructing your financial solution.
Average charge to a new client based on a £50,000 investment:
- Administrator: 5 hours at £100 per hour - £500
- Average cost for a new £50,000 investment = £1,025
- Adviser: 4 hours at £300 per hour - £1,200
- Total amount: £1,700
- Administrator: 7 hours at £100 per hour - £700
- Average cost for a new £100,000 investment = £1,975
- Adviser: 8 hours at £300 per hour - £2,400
- Total amount: £3,100
Our charges are payable on completion of our work and must be settled within 28 business days. Payment can be made either by:
- You may pay our charges via deductions from the financial product(s) that you might invest in, where the product/platform provider allows this. Please note that if you choose to pay by deduction from a financial product this will reduce the amount left for investment and may, depending on your circumstances, have other consequences.
- If your investments are held on a platform (a platform is an online investment administration service) you may choose to pay our charges out of the funds held within the platform cash account (where the platform provider offers this facility).
- Cheque or electronic transfer (we do not accept payments by cash).
Our ongoing charges
Any advice we have provided will only be kept under review as part of an agreed ongoing chargeable service. This service will be agreed with you and confirmed in our service agreement. The charge for this service will be taken monthly, quarterly, half yearly or yearly (depending on the provider) as a % of funds under management.
We offer an ongoing Wealth Management Service. Full details of what is included in this service are available in our Centralised Investment Proposition.
Wealth Management Service
This service offers at least one annual meeting to review* or more frequently as agreed with your financial adviser.
*Full details of our review service will be confirmed in our client engagement letter.
Our annual ongoing charge for this service is up to 1% of funds under management or an agreed fixed fee.Examples of how are charges could apply:
- For a fund of £50,000, our fee would be up to 1% = £500 per annum
- For a fund of £100,000, our fee would be up to 1% = £1000 per annum
Termination of Our Services (On-going Advice)
You have the right to cancel payment for our on-going services giving a notice period of 14 days. Where you hold assets within a WRAP, you need to be aware that there will be terms and conditions applicable, such as your agreement with the wrap provider in respect to facilitating our fees, which means you may need to instruct the wrap provider directly and arrange for the removal of assets from the WRAP or appoint another adviser who will be able to access your assets and provide further on-going advice to you. We will be pleased to assist you at this time in cancelling our service to you, making sure that any WRAP provider is informed of this cancellation.
Our advised protection planning services are suitable if you are looking for the best way to protect you, your family or your business through products such as critical illness cover, health insurance and life cover. We advise on non-investment protection products e.g. term assurance, income protection and critical illness from a range of insurers.
You can pay for our advised protection services by:
- Commission (where this is available)
- A combination of fee and commission
- A fee
Where we are paid by commission we will tell you the amount before we carry out any business for you. Although you may pay nothing to us up front that does not mean that our service is free. You still pay us indirectly through deductions from the amount you pay into your product.
In respect of any regular premium policy which we have arranged for you, should you subsequently cease to pay premiums on the policy and in consequence we are obliged to refund the commission that has been paid to us, we reserve the right to charge you a fee representing the amount we have to repay, for a period of up to four years after commencement of the policy. We will confirm the exact amount that will need to be repaid by you and the timescale over which it will need to be repaid in the suitability report we will send you when a recommendation is made. We will not charge any such fee if you exercise your right to cancel in accordance with any cancellation notice sent to you by the life insurance company.
Paying by fee/a combination of fee and commission
Our fee will be based on an hourly rate basis subject to a minimum fee of £300. Any commission we receive from the product provider can be used to offset this fee. Any surplus will be refunded to you. We will always present you with a personalised quote before undertaking any work that might be charged for. The following example shows what our typical costs would be:
Average charge to a new client requiring family protection against death and critical illness based on £100,000 of coverAdministrator 1 hour at £100 per hour = £100 Average cost for a new protection client is£700*Adviser 2 hours at £300 per hour = £600 *If we received commission from your chosen product provider of £250 this would reduce the fee you pay directly to us to £450
5. OUR OBLIGATIONS
We will confirm to you in writing the basis of our recommendations along with details of any special risks associated.
In transmitting investment applications on your behalf to third parties, we will take all reasonable steps to ensure that we obtain the best possible result for you. This is referred to as ‘best execution’. A copy of our best execution policy is available on request.
Protecting your personal information
Your personal information is important to us. We will endeavour to take all due care to protect this information. We highlight below matters relating to your information that you should be aware of.
Some services are provided to our firm by third parties such as processing business or obtaining compliance or regulatory advice, which warrant the disclosure of more than just your basic contact details. Personal information held by ourselves may be disclosed on a confidential basis, and in accordance with the Data Protection Act 1998, to any such third parties. This information may be transferred electronically (e.g. e-mail) and we, or any such third party, may contact you in future by any means of communication which we consider appropriate at the time.
Product providers and investment managers may administer your policy, any existing policies you may have with them and provide other services from centres in countries outside Europe (such as India and the USA) that do not always have the same standard of Data Protection laws as the UK. However, they are required to put a contract in place to ensure that your information is adequately protected, and they will remain bound by their obligations under the Data Protection Act even when your personal information is processed outside Europe.
We are required by anti-money laundering regulations to verify the identity of our clients, to obtain information as to the purpose and nature of the business which we conduct on their behalf, and to ensure that the information we hold is up-to-date. For this purpose we may use electronic identity verification systems and we may conduct these checks from time to time throughout our relationship.
Conflict of interests
We will endeavour always to act in the best interests of you our client. However, circumstances can arise where we or one of our other clients may have some form of interest in business being transacted for you. If this happens or we become aware that our interests or those of one of our other clients conflict with your interests, we will write to you and obtain your consent before we carry out your instructions, and detail the steps we will take to ensure fair treatment.
Other benefits we may receive
From time to time we may attend training events funded and /or delivered by product providers, fund managers and platforms. These events are designed to enhance our knowledge and ultimately therefore enhance the quality of service we provide to our clients. Further details are available on request.
Communicating with you
We may communicate with you by telephone, post, e-mail or in person. In certain circumstances, we may ask you to confirm any instructions in writing prior to implementation. All our communications with you will be in English.
Product cancellation rights
Full details of the products we recommend to you including, for example, the minimum duration of the product, information on your right to cancel or whether no right to cancel exists, and any other early termination rights and penalties, will be covered in the relevant product disclosure information you will receive before the conclusion of any contract.
In most cases you can exercise a right to cancel by withdrawing from the contract. In general terms you will normally have a 30 day cancellation period for a life, protection, payment protection or pension policy and a 14 day cancellation period for all other policies. Instructions for exercising the right to cancel, if applicable, will be contained in the relevant product disclosure information which will be provided to you.
If you cancel a single premium contract, you may be required to pay for any loss you might reasonably incur in cancelling it which is caused by market movements. This means that, in certain circumstances, you might not get back the full amount you invested if you cancel the policy.
7. HOW YOU ARE PROTECTED
Harpur Wealth Management Limited is authorised and regulated by the Financial Conduct Authority (FCA), 25 The North Colonnade, Canary Wharf, London, E14 5HS.
Our Financial Services Register number is 738074. Our permitted business is advising on and arranging pensions, savings and investment products and non-investment insurance contracts.
You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/firms/systems-reporting/register or by contacting the FCA on 0800 111 6768.
Unless we notify you in writing to the contrary, we will be treating you as a retail client. This means that you are afforded the highest level of protection under the regulatory system and should have the right to take any complaint to the Financial Ombudsman Service.
If you are dissatisfied with a recommendation we have made you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us:
- In writing: Ray Jackson, Harpur Wealth Management Limited, 19 Goldington Road, Bedford, MK40 3JY.
- By phone: +44 (0)1234 924620
- By e-mail:firstname.lastname@example.org
Financial Services Compensation Scheme
We are also covered by the Financial Services Compensation Scheme (‘FSCS’). You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.
Most types of investment business are covered for 100% of the first £50,000 per person per firm, so the maximum compensation is £50,000 per person per firm.
Protection, non-Investment Insurance mediation.
Protection is at 100%, where:
(1) The claim is in respect of a liability subject to compulsory insurance:
(2) The claim is in respect of:
- A relevant omission; and
- A professional indemnity insurance contract, or would be in respect of a professional indemnity insurance contract if the insurance contract had been effected:
- In respect of a relevant omission;
- In respect of a relevant general insurance contract or would be in respect of a relevant general insurance contract if the insurance contract had been effected; and
- Arises from the death or incapacity of the policyholder owing to injury, sickness or infirmity:
- A relevant omission; and
- A pure protection contract, or would be in respect of a pure protection contract if the insurance contract had been effected
We may also, on occasion, advise on other financial products which are not regulated by the Financial Conduct Authority (FCA). The Financial Services Compensation Scheme does not apply to any of these products. Further information about compensation scheme arrangements is available from the FSCS at www.fscs.org.uk/consumer.
We are not permitted to handle client money and we cannot accept a cheque made out to us (unless it is in respect of a service for which we have sent you an invoice) or handle cash.
This agreement is governed by and should be interpreted in accordance with English law and you agree to submit to the non-exclusive jurisdiction of the English Courts.
Legal and accounting advice
Neither our firm nor our employees are qualified to render legal or accounting advice or to prepare any legal or accounting documents. It is hereby understood and agreed that the onus is on you, the client, to refer to a solicitor or accountant any point of law or accountancy that may arise during the course of discussions with us.
We will endeavour to make arrangements for all your investments to be registered in your name unless you first instruct us otherwise in writing. All policy documents will be forwarded to you as soon as practicable after we receive them. If there are a number of documents relating to a series of transactions, we will normally hold each document until the series is complete and then forward them to you.
Investment Performance & Risks
Please be aware that investments can fall, as well as rise, and that you may not get back the full amount invested. The price of investments we may recommend may depend on fluctuations in the financial markets, or other economic factors, which are outside our control. Past performance is not necessarily a guide to future performance.
Specific warnings relevant to the investments, investment strategies or other products we recommend will be confirmed to you in your suitability report. Under the terms of this agreement, we may, if appropriate, advise you on investments which are not readily realisable. We would draw your attention to the risks associated with these investments as there is a restricted market for them. In some circumstances it may therefore not be possible to deal in the investment or obtain reliable information about its value.
Unregulated financial products
Our services may also include advice on investments relating to, or executing transactions in unregulated financial products including non-mainstream pooled investments such as unregulated collective investment schemes (UCIS). Accordingly, you should carefully consider whether such investments are suitable for you in light of your personal circumstances and the financial resources available to you.
Providing information to your insurerYour cover is based upon the information you provide to the insurance company. Where you are buying insurance as an individual, this means that you must take ‘reasonable care’ to answer all questions asked by the insurer fully and accurately. Failure to provide accurate and up to date information may invalidate your insurance cover and mean that a claim may not be paid.